OCEAN CITY, N.J. -- Ocean Shore Holding Co. (NASDAQ: OSHC) today
announced net income of $1.2 million for the quarter ended March 31,
2011 compared to $1.3 million earned in the first quarter of 2010. Basic
and diluted earnings per share were $0.18, compared to $0.20 in the same
period last year. Results of the first quarter of 2011 reflect $89,000
(net of tax) of expenses related to the previously announced merger with
CBCH Financialcorp, Inc. and its subsidiary Select Bank, which is
expected to close the third quarter of 2011.

Ocean Shore Holding Co. (the "Company") is the holding
company for Ocean City Home Bank (the "Bank"), a federal
savings bank headquartered in Ocean City, New Jersey. The Bank operates
a total of ten full-service banking offices in eastern New Jersey.

"We are very pleased with our start to 2011," said Steven E. Brady, President and CEO. "Assets grew at an annualized rate of
over 10% and were funded by core deposits. Although non-performing
assets ticked up a little, there were no charge-offs during the quarter.
Net interest income remained steady compared to the prior year and was
up slightly from the fourth quarter of 2010."

Balance Sheet Review

Total assets grew $21.5 million, or 2.6%, to $861.4 million at March
31, 2011 from December 31, 2010. Loans receivable, net, was unchanged at
$660.4 million, while investment and mortgage-backed securities increased $18.4 million, or 77.6%, to $42.1 million during the first
quarter of 2011. Cash and cash equivalents grew $3.1 million, or 2.8%,
to $114.0 million at March 31, 2011 from December 31, 2010. Loan
originations and other advances totaling $34.7 million were offset by
payoffs and payments received of $34.6 million resulting in no growth in
the portfolio. The increase in investments and mortgage-backed
securities resulted from new purchases of short term agency investments
of $20.0 million offset by normal repayment and payoffs of $1.6 million.
Cash and cash equivalents growth resulted from increased deposit
activity.

Deposits grew $20.4 million, or 3.4%, to $623.7 million at March 31,
2011 from December 31, 2010. The Company continued its focus on core
deposits, which increased $27.0 million, or 6.9%, to $419.4 million.
Certificates of deposit decreased $6.7 million, or 3.2%, to $204.3
million at March 31, 2011 compared to year-ended 2010. Total borrowings
were unchanged at $125.5 million for the quarter-ended March 31,
2011.

Asset Quality

The provision for loan losses totaled $75,000 for the first quarter
of 2011 compared to $152,000 for the first quarter of 2010 and $76,000
for the fourth quarter of 2010. The allowance for loan losses totaled
$4.1 million, or 0.62% of total loans, at March 31, 2011 compared to
$4.0 million, or 0.60% of total loans, at December 31, 2010. The Company
experienced no charge-off activity in the first quarter of 2011 as
compared to $26,000 in charge-off activity for the first quarter of
2010.

Non-performing assets totaled $5.9 million, or 0.88% of total
assets, at March 31, 2011, compared to $5.3 million, or 0.79% of total
assets, at December 31, 2010. Non-performing assets consisted of eleven
residential mortgages totaling $4.8 million, three commercial mortgages
totaling $726,000, four commercial loans totaling $169,000, two consumer
equity loans totaling $75,000 and one real estate owned property
totaling $98,000. Specific reserves recorded for these loans at March
31, 2011 were $559,000.

Income Statement Analysis

Net interest income decreased $6,000, or 0.1%, to $6.0 million for
the first quarter of 2011 compared to $6.0 million in the first quarter
of 2010. Net interest margin increased 1 basis point in the quarter
ended March 2011 to 3.47% versus 3.46% for the quarter ended March 2010
and 6 basis points from 3.41% for the quarter ended December 2010. The
decrease in net interest income in the first quarter of 2011 compared to
the first quarter of 2010 was the result of a decrease in average
interest-earning assets of $3.6 million, a decrease of 24 basis points
in the average yield on interest-earning assets to 5.25% and an increase
in average interest-bearing liabilities of $76.3 million. These changes
were offset by a decrease of 51 basis points in the average cost of
interest-bearing liabilities to 1.75%.

Other income decreased $5,000 to $802,000 for the first quarter of
2011 compared to $807,000 in the first quarter of 2010. The decrease in
other income resulted from decreases in deposit account fees and cash
surrender value of life insurance offset by increases in debit card commissions over the prior period.

Other expenses increased $203,000, or 4.6%, to $4.7 million during
the first quarter of 2011 compared to the first quarter of 2010. Costs
associated with the pending merger with CBCH Financialcorp and its
subsidiary Select Bank totaled $89,000. Additionally, increases in
salaries and benefits, occupancy and equipment and FDIC insurance of
$142,000 were offset by decreases in marketing and other expense of
$28,000.

This press release, as well as other written communications made
from time to time by the Company and its subsidiaries and oral
communications made from time to time by authorized officers of the
Company, may contain statements relating to the future results of the
Company (including certain projections and business trends) that are
considered "forward-looking statements" as defined in the
Private Securities Litigation Reform Act of 1995 (the PSLRA). Such
forward-looking statements may be identified by the use of such words as
"believe," "expect," "anticipate,"
"should," "planned," "estimated,"
"intend" and "potential." For these statements, the
Company claims the protection of the safe harbor for forward-looking
statements contained in the PSLRA.

The Company cautions you that a number of important factors could
cause actual results to differ materially from those currently
anticipated in any forward-looking statement. Such factors include, but
are not limited to: prevailing economic and geopolitical conditions;
changes in interest rates, loan demand, real estate values and
competition; changes in accounting principles, policies, and guidelines;
changes in any applicable law, rule, regulation or practice with respect
to tax or legal issues; and other economic, competitive, governmental,
regulatory and technological factors affecting the Company's
operations, pricing, products and services and other factors that may be
described in the Company's annual report on Form 10-K and quarterly
reports on Form 10-Q as filed with the Securities and Exchange
Commission. The forward-looking statements are made as of the date of
this release, and, except as may be required by applicable law or
regulation, the Company assumes no obligation to update the
forward-looking statements or to update the reasons why actual results
could differ from those projected in the forward-looking statements.

SELECTED FINANCIAL CONDITION DATA (Unaudited)

March 31,

December 31,

2011

2010

% Change

(Dollars in thousands)

Total assets

$861,365

$839,857

2.6%

Cash and cash equivalents

114,014

110,865

2.8

Investment securities

42,131

23,721

77.6

Loans receivable, net

660,385

660,340

0.1

Deposits

623,685

603,334

3.4

FHLB advances

110,000

110,000

0.0

Subordinated debt

15,464

15,464

0.0

Stockholder's equity

101,750

100,554

1.2

SELECTED OPERATING DATA (Unaudited)

Three Months Ended

March 31,

2011

2010

% Change

(Dollars in thousands, except per

share and share amounts)

Interest and dividend income

$9,038

$9,505

(4.9)%

Interest expense

3,063

3,524

(13.1)

Net interest income

5,975

5,981

(0.1)

Provision for loan losses

75

152

(50.7)

Net interest income after provision for loan losses

5,900

5,829

1.2

Other income

802

807

(0.6)

Other expense

4,656

4,452

4.6

Income before taxes

2,046

2,184

(6.3)

Provision for income taxes

841

848

(0.8)

Net income

$1,205

$1,336

(9.8)

Earnings per share basic

$0.18

$0.20

(10.0)

Earnings per share diluted

$0.18

$0.20

(10.0)

Average shares outstanding basic

6,730,331

6,818,485

Average shares outstanding diluted

6,801,558

6,836,588

Three Months Ended

Three Months Ended

March 31, 2011

March 31, 2010

Average

Average

Balance

Yield/Cost

Balance

Yield/Cost

(Dollars in thousands)

Loans

$657,986

5.20%

$663,763

5.44%

Investment securities

30,656

6.30%

28,474

6.66%

Interest-bearing deposits

574,102

1.09%

497,774

1.63%

Total borrowings

125,464

4.77%

125,464

4.77%

Interest rate spread

3.50%

3.23%

Net interest margin

3.47%

3.46%

ASSET QUALITY DATA (Unaudited)

Three Months

Year Ended

Ended

December 31,

March 31, 2011

2010

(Dollars in thousands)

Allowance for Loan Losses:

Allowance at beginning of period

$3,988

$3,476

Provision for loan losses

75

892

Charge-offs

-

(380)

Recoveries

-

-

Net charge-offs

-

(380)

Allowance at end of period

$4,063

$3,988

Allowance for loan losses as a percent of total loans

0.62%

0.60%

Allowance for loan losses as a percent of nonperforming loans

69.9%

76.4%

At March 31,

At December 31,

2011

2010

(Dollars in thousands)

Nonperforming Assets:

Nonaccrual loans:

Real estate mortgage - residential

$4,843

$4,282

Real estate mortgage - commercial

726

729

Commercial business loans

168

134

Consumer loans

75

77

Total

5,812

5,222

Real estate owned

98

98

Other nonperforming assets

-

-

Total nonperforming assets

$5,910

$5,320

Nonperforming loans as a percent of total loans

0.88%

0.79%

Nonperforming assets as a percent of total assets

0.69%

0.63%

SELECTED FINANCIAL RATIOS (Unaudited)

Three Months Ended

March 31,

2011

2010

Selected Performance Ratios:

Return on average assets (1)

0.55%

0.68%

Return on average equity (1)

4.74%

5.43%

Interest rate spread (1)

3.50%

3.23%

Net interest margin (1)

3.47%

3.46%

Efficiency ratio

68.70%

65.60%

(1) Annualized.

OCEAN SHORE HOLDING COMPANY - QUARTERLY DATA (Unaudited)

Q1

Q4

Q3

Q2

Q1

2011

2010

2010

2010

2010

(In thousands except per share amounts)

Income Statement Data:

Net interest income

$5,975

$5,913

$5,941

$6,053

$5,981

Provision for loan losses

75

76

125

540

152

Net interest income after provision for loan losses

5,900

5,837

5,816

5,513

5,829

Other income

802

874

836

886

807

Other expense

4,656

4,377

4,319

4,375

4,452

Income before taxes

2,046

2,334

2,333

2,024

2,184

Provision for income taxes

841

906

892

785

848

Net income

$1,205

$1,428

$1,441

$1,239

$1,336

Share Data:

Earnings per share basic

$0.18

$0.21

$0.21

$0.18

$0.20

Earnings per share diluted

$0.18

$0.21

$0.21

$0.18

$0.20

Average shares outstanding basic

6,730,331

6,721,891

6,826,698

6,826,946

6,818,485

Average shares outstanding diluted

6,801,558

6,769,445

6,835,521

6,834,525

6,836,588

Total shares outstanding

7,296,780

7,296,780

7,296,904

7,307,590

7,307,590

Balance Sheet Data:

Total assets

$861,365

$839,857

$838,165

$798,790

$781,207

Investment securities

42,131

23,721

25,363

27,960

27,576

Loans receivable, net

660,385

660,340

669,868

675,681

666,323

Deposits

623,685

603,334

603,547

563,258

546,988

FHLB advances

110,000

110,000

110,000

110,000

110,000

Subordinated debt

15,464

15,464

15,464

15,464

15,464

Stockholder's equity

101,750

100,554

99,314

99,801

98,562

Asset Quality:

Non-performing assets

$5,910

$5,320

$4,052

$3,296

$2,578

Non-performing loans to total loans

0.88%

0.79%

0.59%

0.47%

0.37%

Non-performing assets to total assets

0.69%

0.63%

0.48%

0.41%

0.33%

Allowance for loan losses

$4,063

$3,988

$3,982

$4,124

$3,601

Allowance for loan losses to total loans

0.62%

0.60%

0.59%

0.61%

0.54%

Allowance for loan losses to non-performing loans

69.9%

76.4%

100.7%

125.1%

139.70%

COPYRIGHT 2011 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.